Iraq’s shift from a cash-heavy economy to a digital one is gaining momentum, but policy implementation will play a crucial role, the chairman of the country’s largest FinTech company has said.
The Central Bank of Iraq has announced that all government payments will move to electronic channels by July 2026, part of a broader plan that includes a national instant-payment platform and potentially even a digital dinar.
“The ambitions are always there, but the real need is to focus on a well-crafted and a world-class plan and the execution of it,” Bahaa Abdul Hadi, chairman and co-founder of International Smart Card, which owns the Qi Card, told The National.
Since early 2023, the Iraqi government has introduced financial and economic reforms, including the use of electronic payment systems by the government and private sectors. These also include regulations requiring electronic payment providers to tighten anti-money-laundering and cybersecurity rules.
The Central Bank of Iraq’s cashless mandate, point-of-sale incentives, e-Know Your Customer regulations, as well as other key components of this mandate “are all in place”, he said.
“What matters now is astute follow-through at the ministry level so that the Iraqi people actually reap the fruits of the mandate.”
Many Iraqis tap cards and phones instead of pulling wads of dinars from their pockets, a sign of changing payment habits. However, digital literacy remains the biggest challenge, Mr Abdul Hadi said.
“Teaching the Iraqi society why a tap or QR code scan is safer than a bundle of banknotes requires patient, empathetic education for millions of unbanked people.”
He says better incentives are needed to encourage more Iraqis to trust and adopt digital payment.
“I believe that when people experience real protection, they naturally switch from the banknotes to the digital payment,” he added.
From the government side, Mr Abdul Hadi said, the hardest challenge is managing timelines. “Regulators are juggling multiple reforms simultaneously, which often causes delays and sets us back to square one.”
Still, he is “extremely” optimistic about the future.
“Within the next five years, you will see a tipping point where digital solutions bridge the cash gap in urban Iraq. However, the rural areas may take about 10 years, but the direction is there and irreversible,” he said.
Cash could fall below 50 per cent of urban retail spending by 2030 “if the current momentum continues”. The tipping point will be universal QR payment acceptance and real-time open banking, both of which are in the pilot phase.
“A fully digital ecosystem in Iraq is therefore not a distant goal; it’s the trajectory we are actively pursuing,” Mr Abdul Hadi added.
From payrolls to fintech
Launched in 2007 by International Smart Card, the Qi Card began as a service to pay public-sector salaries and pensions electronically.
Today it claims to have more than 11 million users and a network of 23,000 point-of-sale terminals reaching every Iraqi governorate, including remote villages.
The company’s services have expanded beyond salary disbursement to retail and bill payments, remittances, buy-now-pay-later (BNPL), micro-savings and a smartphone app that accounts for the majority of transactions.
“Just five years ago, most Iraqis got to know us at a card terminal,” Mr Abdul Hadi said. “Today, six out of 10 Qi payments start from a personal smartphone wallet or with a QR tap.”
Qi Card is now exploring expansion in regional markets, including the UAE and Jordan. Its payment gateway application is in the final stages of approval by the Central Bank of the UAE. In Jordan, it has established a back office in Amman, which focuses on risk and compliance standards.
“Our top priority is serving the Iraqi diaspora in the GCC and Europe,” he said. “Beyond that, we see strong synergies in Jordan and Oman. The Levant is also on our radar, where we are exploring select markets where cash is still king – subject to the local regulatory approvals,” he added.
Misuse allegations
For the government and the central bank, the stakes are high. Moving millions of Iraqis from cash to cards and mobile wallets could curb corruption, widen financial inclusion and stabilise the dinar. Yet the same systems could also be exploited if controls fail.
Whenever our system detects a red flag, we immediately off-board the suspicious account
Bahaa Abdul Hadi,
chairman and co-founder of International Smart Card, which owns Qi Card
In May, The Wall Street Journal alleged that Qi’s cards were exploited in dollar arbitrage schemes benefiting Iran-backed groups, allowing local salaries to be converted into hard currency overseas to help Iran circumvent US sanctions.
The WSJ alleged that cross-border card transactions by the Popular Mobilisation Forces, an umbrella paramilitary movement, surged from $50 million to $1.5 billion monthly between early 2023 and April 2023, generating an estimated $450 million in profits in 2023 alone.
Some commanders seized subordinates’ payment cards, or created fake identities to obtain additional payouts, it added.
Mr Abdul Hadi firmly rejected the claims, saying Qi maintains “zero tolerance” for any illicit use.
“Whenever our system detects a red flag, we immediately off-board the suspicious account,” he said, adding that more than 3,000 accounts have been blocked. He did not elaborate.
“Where third parties have attempted to exploit the broader card ecosystem for arbitrage, we have actively collaborated with the Central Bank of Iraq, Visa and Mastercard – taking measures such as freezing accounts, capping cross-border volumes, and blocking thousands of suspicious cards,” he added.
The company uses biometric authentication, geofencing and real-time monitoring to detect abuse, he said. In June, it also signed a three-year partnership with US consultancy K2 Integrity to strengthen oversight.
None of the US agencies have contacted Qi Card to date over these allegations, Mr Abdul Hadi said.
“We have not received any warning or any enforcement notice,” he said. The company is “fully committed to co-operating with both US authorities and Iraqi regulators, should they request information through lawful channels”.
However, Qi Card has stopped disbursing salaries for the Popular Mobilisation Forces. “This decision was made in consultation with our risk and compliance advisers to ensure full alignment with international regulations and to stay away from the US pressure.”
The US has long warned that the PMF is strengthening Iran’s influence and undermining Iraq’s sovereignty. America has blacklisted several of the group’s senior leaders, including its chairman Falih Al Fayyadh.
Under pressure from the US and other foreign powers, the Iraqi government also withdrew a contentious draft law for the PMF in August, which aimed to widen its powers and elevate its status to be on a par with the rest of the Iraqi military.
The Sand Castle
Director: Matty Brown
Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea
Rating: 2.5/5
WHAT IS A BLACK HOLE?
1. Black holes are objects whose gravity is so strong not even light can escape their pull
2. They can be created when massive stars collapse under their own weight
3. Large black holes can also be formed when smaller ones collide and merge
4. The biggest black holes lurk at the centre of many galaxies, including our own
5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed
COMPANY%20PROFILE
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SERIE A FIXTURES
Saturday (UAE kick-off times)
Atalanta v Juventus (6pm)
AC Milan v Napoli (9pm)
Torino v Inter Milan (11.45pm)
Sunday
Bologna v Parma (3.30pm)
Sassuolo v Lazio (6pm)
Roma v Brescia (6pm)
Verona v Fiorentina (6pm)
Sampdoria v Udinese (9pm)
Lecce v Cagliari (11.45pm)
Monday
SPAL v Genoa (11.45pm)
UAE Premiership
Results
Dubai Exiles 24-28 Jebel Ali Dragons
Abu Dhabi Harlequins 43-27 Dubai Hurricanes
Final
Abu Dhabi Harlequins v Jebel Ali Dragons, Friday, March 29, 5pm at The Sevens, Dubai
Match info
Australia 580
Pakistan 240 and 335
Result: Australia win by an innings and five runs
Iraq negotiating over Iran sanctions impact
- US sanctions on Iran’s energy industry and exports took effect on Monday, November 5.
- Washington issued formal waivers to eight buyers of Iranian oil, allowing them to continue limited imports. Iraq did not receive a waiver.
- Iraq’s government is cooperating with the US to contain Iranian influence in the country, and increased Iraqi oil production is helping to make up for Iranian crude that sanctions are blocking from markets, US officials say.
- Iraq, the second-biggest producer in the Organization of Petroleum Exporting Countries, pumped last month at a record 4.78 million barrels a day, former Oil Minister Jabbar Al-Luaibi said on Oct. 20. Iraq exported 3.83 million barrels a day last month, according to tanker tracking and data from port agents.
- Iraq has been working to restore production at its northern Kirkuk oil field. Kirkuk could add 200,000 barrels a day of oil to Iraq’s total output, Hook said.
- The country stopped trucking Kirkuk oil to Iran about three weeks ago, in line with U.S. sanctions, according to four people with knowledge of the matter who asked not to be identified because they aren’t allowed to speak to media.
- Oil exports from Iran, OPEC’s third-largest supplier, have slumped since President Donald Trump announced in May that he’d reimpose sanctions. Iran shipped about 1.76 million barrels a day in October out of 3.42 million in total production, data compiled by Bloomberg show.
- Benchmark Brent crude fell 47 cents to $72.70 a barrel in London trading at 7:26 a.m. local time. U.S. West Texas Intermediate was 25 cents lower at $62.85 a barrel in New York. WTI held near the lowest level in seven months as concerns of a tightening market eased after the U.S. granted its waivers to buyers of Iranian crude.
GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900
The specs
Engine: 5.0-litre V8
Power: 480hp at 7,250rpm
Torque: 566Nm at 4,600rpm
Transmission: 10-speed auto
Fuel consumption: L/100km
Price: Dh306,495
On sale: now
If you go…
Emirates launched a new daily service to Mexico City this week, flying via Barcelona from Dh3,995.
Emirati citizens are among 67 nationalities who do not require a visa to Mexico. Entry is granted on arrival for stays of up to 180 days.
‘Dark Waters’
Directed by: Todd Haynes
Starring: Mark Ruffalo, Anne Hathaway, William Jackson Harper
Rating: ****
The%20specs
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More from Neighbourhood Watch:Key findings of Jenkins report
- Founder of the Muslim Brotherhood, Hassan al Banna, “accepted the political utility of violence”
- Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
- Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
- Laying out the report in the House of Commons, David Cameron told MPs: “The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism.”
The bio
Job: Coder, website designer and chief executive, Trinet solutions
School: Year 8 pupil at Elite English School in Abu Hail, Deira
Role Models: Mark Zuckerberg and Elon Musk
Dream City: San Francisco
Hometown: Dubai
City of birth: Thiruvilla, Kerala
2025 Fifa Club World Cup groups
Group A: Palmeiras, Porto, Al Ahly, Inter Miami.
Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.
Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.
Group D: Flamengo, ES Tunis, Chelsea, (Leon banned).
Group E: River Plate, Urawa, Monterrey, Inter Milan.
Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.
Group G: Manchester City, Wydad, Al Ain, Juventus.
Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
BMW M5 specs
Engine: 4.4-litre twin-turbo V-8 petrol enging with additional electric motor
Power: 727hp
Torque: 1,000Nm
Transmission: 8-speed auto
Fuel consumption: 10.6L/100km
On sale: Now
Price: From Dh650,000
The%20specs
%3Cp%3E%3Cstrong%3EEngine%3A%3C%2Fstrong%3E%201.8-litre%204-cyl%20turbo%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E190hp%20at%205%2C200rpm%0D%3Cbr%3E%3Cstrong%3ETorque%3A%3C%2Fstrong%3E%20320Nm%20from%201%2C800-5%2C000rpm%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3ESeven-speed%20dual-clutch%20auto%0D%3Cbr%3E%3Cstrong%3EFuel%20consumption%3A%3C%2Fstrong%3E%206.7L%2F100km%0D%3Cbr%3E%3Cstrong%3EPrice%3A%3C%2Fstrong%3E%20From%20Dh111%2C195%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3ENow%3C%2Fp%3E%0A
‘Falling%20for%20Christmas’
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Scoreline
Syria 1-1 Australia
Syria Al Somah 85′
Australia Kruse 40′
Miguel Cotto world titles:
WBO Light Welterweight champion – 2004-06
WBA Welterweight champion – 2006-08
WBO Welterweight champion – Feb 2009-Nov 2009
WBA Light Middleweight champion – 2010-12
WBC Middleweight champion – 2014-15
WBO Light Middleweight champion – Aug 2017-Dec 2017
TOUR DE FRANCE INFO
Dates: July 1-23
Distance: 3,540km
Stages: 21
Number of teams: 22
Number of riders: 198
ESSENTIALS
The flights
Etihad (etihad.com) flies from Abu Dhabi to Mykonos, with a flight change to its partner airline Olympic Air in Athens. Return flights cost from Dh4,105 per person, including taxes.
Where to stay
The modern-art-filled Ambassador hotel (myconianambassador.gr) is 15 minutes outside Mykonos Town on a hillside 500 metres from the Platis Gialos Beach, with a bus into town every 30 minutes (a taxi costs €15 [Dh66]). The Nammos and Scorpios beach clubs are a 10- to 20-minute walk (or water-taxi ride) away. All 70 rooms have a large balcony, many with a Jacuzzi, and of the 15 suites, five have a plunge pool. There’s also a private eight-bedroom villa. Double rooms cost from €240 (Dh1,063) including breakfast, out of season, and from €595 (Dh2,636) in July/August.